In the spring of 1860, W. M. Hinman, who had been on the frontier for a number of years in the employ of the Government, removed from Fort Laramie to Cottonwood Springs and opened up a farm some four miles west of the Springs. In the course of a few years, he had a farm of nearly two hundred and fifty acres, fenced with cedar posts and rails. He was remarkably successful, the yield of crops being very great. Potatoes and vegetables were, however, the principal crops raised, and with the immense travel over this route, the market was always good. His prices were high, and the profits were of course enormous. Besides his dealings with the freighters and ranchmen, he was, after the establishment of a military post here made Government Interpreter. From the very first, his trade with the Indians was great. The Indians are particularly fond of vegetables of all kinds, and would pay almost any price, trading their ponies and furs for them. Mr. Hinman tells us that one season some eighty lodges of Indians camped near his farm, and so passionately fond were they of vegetables, that they remained until they had literally traded everything they possessed that was of the least possible value. On this farm also were planted a large number of forest trees and an extensive orchard. These trees all thrived, and their growth and development was wonderful until in the summer of 1864 a flood of the Platte River destroyed them.

In November of 1863, Fort McPherson was established by the United States Government at this settlement of Cottonwood Springs. The location of the fort was at the foot of the bluffs along the Platte River. The cause of its location at this point was an accident. The expedition sent out for the purpose was overtaken by a cold storm and sought shelter under these bluffs. Finding themselves near a settlement, they concluded to locate the fort here.

A better location might probably have been selected, as the bluffs coming down so closely enabled the Indians in after years to approach unseen so near the fort on one side as to prove very dangerous to any who might be a short distance away from the post on that side. This military station was first commanded by Maj. O'Brien.